TJX Tops Street in 3Q But Holiday View Falls Short

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Published November 19, 2013

| FOXBusiness

TJX Cos. (TJX) revealed stronger-than-expected third-quarter profits on Tuesday but warned of weaker year-over-year earnings for the key holiday season. 

The Framingham, Mass.-based T.J. Maxx and Marshalls parent reported net income of $623 million, or 86 cents a share, compared with a year-earlier profit of $461.5 million, or 62 cents.

Excluding a one-time tax benefit, TJX said it earned 75 cents, topping average analyst estimates by a penny, according to a Thomson Reuters poll.

As more price-conscious consumers visited its discount department stores, revenue for the three months ended Nov. 2 increased by 9% to $7 billion from $6.4 billion a year ago, matching the Street’s view.

Same-store sales, a key growth metric for retailers measuring sales at stores open longer than a year, increased by 5%.

"We believe these robust results demonstrate, once again, our ability to succeed in all types of economic and retail environments,” TJX CEO Carol Meyrowitz said in a statement.

Shares of TJX were up 1.5% to $63.42 in morning trade.

TJX said the fourth quarter is “off to a good start" and raised its full-year non-GAAP earnings guidance to between $2.80 and $2.83 a share, up from $2.47 last year.

However, the consensus view is slightly higher, at $2.86.

The retailer also kept its fourth-quarter guidance unchanged in the range of 77 cents to 80 cents, down slightly from 82 cents in the year-earlier period and below average estimates of 84 cents.

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